Exchange Journalism from the Position of Behavioral Finance: Economic Thinking of a Stock Market Speculator in the Beginning of the 20th Century

Abstract

Introduction. Modern financial theory still wonders the degree of behavioral factors influence on the financial assets pricing. We assume that it necessary to consider this problem within the framework of historical and economic science, since exchange prices are widely used in modern research as a historical source. Turning to the materials of professional stock exchange journalism, in this article we sought to determine how market participants described the pricing mechanism and how their market behavior were built in accordance with these analytical settings. Materials and Methods. We chose the book “Political, economic and financial issues of recent times” as our main source. That work includes analytical articles by I. P. Manus (1860–1918), a well-known stock speculator who made a millionth fortune on the Saint Petersburg Stock Exchange. Results. I. P. Manus’s articles demonstrate how the practice of economic analysis of financial markets combines a rational assessment of the financial results with taking into account “inefficient”, speculative price factors. In our source we trace the idea of uncertainty that cannot be overcome by formal analysis methods. All of that actualizes the need to use the methodology of behavioral finance when working with financial history materials. Discussion and Conclusion. We believe that it is not entirely correct for our material to draw a rigid methodological boundary between “behavioral” and “rational”. If we use the terminology of social history, it is much more effective to consider these concepts in their complex interaction, which forms a special “frame” of financial practice of the early 20th century.